Greece to issue new 10-year bond via 5 banks

Greek motorcycle policemen lean on their bikes in central Syntagma Square as a banner reading "Rise up, so the Measures do not Pass" is seen hanging from the Finance Ministry building, on the left, in Athens on Thursday. Photo: AP.

Greece has appointed five banks to handle a new 10-year bond issue that will come due on June 19, 2010.

The country’s Public Debt Management Agency named Barclays Capital, HSBC, National Bank of Greece, Nomura and Piraeus Bank as lead managers for the bond issue.

The sale will be watched closely by financial markets to gauge the depth of Greece’s debt crisis. The announcement comes a day after debt—ridden Greece detailed new austerity measures, including salary cuts for civil servants, pension freezes and tax hikes.

Greece plans to borrow some euro54 billion ($7.4 billion) through sovereign debt issues this year, and has so far raised around euro13 billion ($18 billion), including treasury bill sales.